Tenable to Acquire Eureka Security to Add Data Security Posture Management to its Cloud Security Platform
Tenable announced its agreement to acquire Eureka Security, a DSPM provider for cloud environments. The acquisition, expected to close this month, will integrate Eureka's capabilities into Tenable's CNAPP solution, enhancing data security posture management. This integration aims to provide better visibility and control over cloud data security risks, addressing vulnerabilities, misconfigurations, and over-privileged access. According to Tenable's 2024 Cloud Security Outlook, 95% of surveyed organizations faced cloud-related breaches in the last 18 months, with 92% experiencing sensitive data exposure. Tenable's acquisition of Eureka aims to offer comprehensive cloud security solutions and improve compliance, though it will not significantly impact revenue this year.
- Tenable to acquire Eureka Security, enhancing its cloud security platform.
- Integration of DSPM capabilities to improve visibility and control over cloud data security risks.
- Focus on addressing vulnerabilities, misconfigurations, and over-privileged access.
- Acquisition expected to close this month, showing prompt strategic action.
- 95% of surveyed organizations faced cloud-related breaches, highlighting market need.
- Tenable's enhanced offerings aim to improve security compliance for customers.
- Eureka Security's technology offers better prioritization of cloud risks.
- Tenable brings an expansive customer base and strong go-to-market capabilities.
- Integration into CNAPP solution expected later this year.
- The acquisition is not expected to have a material impact on revenue this year.
- High percentage of organizations (92%) reported exposure of sensitive data, indicating significant existing issues.
Insights
Tenable Holdings' acquisition of Eureka Security is a strategic move in the expanding cloud security market. The integration of Data Security Posture Management (DSPM) into Tenable's Cloud Native Application Protection Platform (CNAPP) could enhance its competitive positioning. From a financial perspective, this acquisition might not materially impact 2024 revenues, but it positions Tenable for potential long-term growth by expanding its service offerings. The cloud security market is rapidly growing, with many organizations focusing on enhancing their security postures due to increased cloud adoption. Investors should note that while the immediate revenue impact is minimal, the acquisition could lead to higher customer retention and new customer acquisition over time. It's essential to monitor how well Tenable integrates Eureka's technology and whether it can capitalize on the expanded capabilities to generate incremental revenue in the future.
The inclusion of Eureka Security’s DSPM capabilities into Tenable’s CNAPP is a significant technical enhancement. DSPM helps organizations identify and mitigate risks related to their cloud data, such as policy drift and misconfigurations. For investors, understanding that DSPM provides visibility into sensitive data locations, access permissions and potential risk levels is crucial. This integration means security teams can offer more comprehensive protection against data breaches and compliance violations, which are critical concerns as highlighted by the 2024 Tenable Cloud Security Outlook study. This move demonstrates Tenable’s commitment to advancing its platform's capabilities, likely making it more attractive to customers who prioritize robust cloud security solutions. However, the successful technical integration and customer adoption of these new capabilities will be key to assessing the acquisition’s long-term value.
The acquisition of Eureka Security by Tenable aligns with market trends showing increased demand for comprehensive cloud security solutions. According to the Tenable Cloud Security Outlook study, 95% of organizations experienced cloud-related breaches in the past 18 months, underscoring the critical need for enhanced cloud data protection. Tenable's move to integrate DSPM directly addresses these market needs, potentially allowing it to capture a more significant market share. For retail investors, it’s important to consider that such strategic acquisitions can lead to a stronger market position and drive customer loyalty. This could eventually translate into improved financial performance and shareholder value. However, investors should also consider the broader competitive landscape and how effectively Tenable can leverage this acquisition to stay ahead of rivals.
Unified CNAPP will provide comprehensive protection across infrastructure, workloads, identities and data for rapidly growing cloud security customer base
COLUMBIA, Md., June 06, 2024 (GLOBE NEWSWIRE) -- Tenable® Holdings, Inc., the Exposure Management company, today announced that it has signed a definitive agreement to acquire Eureka Security, Inc., a provider of data security posture management (DSPM) for cloud environments. Eureka Security helps security teams gain a holistic view into an organization’s cloud data security footprint, fight policy drift and misconfigurations that put data at risk, and continuously improve their security posture over time. The acquisition is expected to close this month.
By adding DSPM capabilities to its CNAPP solution, Tenable will help customers identify key evidence related to cloud data risk, including where sensitive data resides in the cloud, who has access to that data and the severity of the risk posed by potential data compromise. This type of visibility is central to an organization’s ability to accurately assess its cloud security compliance. In the 2024 Tenable Cloud Security Outlook study,
“Eureka Security’s technology will enable Tenable to provide even better prioritization of cloud risks and identify toxic combinations beyond vulnerabilities, misconfigurations and over-privileged access to include data at risk as well,” said Shai Morag, senior vice president and general manager of Cloud Security, Tenable. “This is another example of how we’re pushing the envelope in cloud security innovation for customers and leading the market forward by developing best-in-class capabilities.”
“Eureka Security's data-centric approach provides the visibility, control and automation needed to navigate the dynamic cloud landscape while ensuring the highest level of security and compliance,” said Liat Hayun, co-founder and CEO, Eureka Security. “We're excited to join Tenable. Integrating our capabilities into Tenable’s CNAPP offering creates a compelling capability for customers. Tenable also brings an expansive customer base, and strong go-to-market capabilities. We couldn't have found a better match to help us expand our mission to reduce cloud data risk globally.”
The integration of DSPM will round out the current Tenable Cloud Security solution that already includes such key capabilities as unified CNAPP, iron-clad CSPM protection, cloud workload protection and industry-leading CIEM, among others, which will give security teams the context and prioritization guidance to make efficient and accurate remediation decisions. The Eureka Security DSPM capabilities are expected to be natively integrated into Tenable Cloud Security and its leading CNAPP solution later this year.
The acquisition is not expected to have a material impact on revenue this year.
For more information, visit the solution pages for Tenable Cloud Security or the Tenable One Exposure Management Platform.
About Tenable
Tenable® is the Exposure Management company. Approximately 44,000 organizations around the globe rely on Tenable to understand and reduce cyber risk. As the creator of Nessus®, Tenable extended its expertise in vulnerabilities to deliver the world’s first platform to see and secure any digital asset on any computing platform. Tenable customers include approximately 65 percent of the Fortune 500, approximately 50 percent of the Global 2000, and large government agencies. Learn more at tenable.com.
Forward-Looking Statements
This press release contains forward-looking information related to Tenable, and its acquisition of Eureka Security, Inc. that involves substantial risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such statements. You can generally identify forward-looking statements by the use of forward-looking terminology such as the words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “explore,” “evaluate,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” or “will,” or the negative thereof or other variations thereon or comparable terminology. The forward-looking statements in this press release are based on Tenable’s current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties, many of which are beyond Tenable’s control. Forward-looking statements in this communication include, among other things, statements about the potential benefits of the acquisition and product developments and other possible or assumed business strategies, potential growth opportunities, new products, and potential market opportunities. Risks and uncertainties include, among other things, our ability to successfully integrate Eureka Security’s operations; our ability to implement our plans, forecasts and other expectations with respect to Eureka Security’s business; our ability to realize the anticipated benefits of the acquisition, including the possibility that the expected benefits from the acquisition will not be realized or will not be realized within the expected time period; disruption from the acquisition making it more difficult to maintain business and operational relationships; the inability to retain key employees; the negative effects of the consummation of the acquisition on the market price of our common stock or on our operating results; unknown liabilities; attracting new customers and maintaining and expanding our existing customer base; our ability to scale and update our platform to respond to customers’ needs and rapid technological change, increased competition on our market and our ability to compete effectively, and expansion of our operations and increased adoption of our platform internationally.
Additional risks and uncertainties that could affect our financial results are included in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and other filings that we make from time to time with the Securities and Exchange Commission (SEC) which are available on the SEC’s website at www.sec.gov. In addition, any forward-looking statements contained in this communication are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Contact Information
Investor Relations
investors@tenable.com
Media Relations
Tenable
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